Singapore has a total area 721.5 km2, with population 5,708,844, GDP per Capita is 437 percent of the world’s average, and here “JUST” 575,353 number of cars are registered till now. If you are in a queue to buy a new car in Singapore then get ready for a great struggle. Not only purchasing a new car is difficult but buy a used car is also hectic.
Here are 5 reasons that why people don’t prefer to own a car irrespective of high income:
- Multilayers of Taxes Structure
Without a doubt, Government of Singapore wants to stop their citizen from buying and using own vehicle all the time. Think about this, with such a busy and high GDP country but people cannot afford to buy own car, yes it is true. The Government’s intention behind is not to harass the people but to avoid tons of traffic on roads. In order to prevent the futuristic traffic problem, the government of Singapore has implemented many layers of small taxes to increase the car price.
Another reason for high prices is also to promote public transport and can hire a private taxi. This also leads to employment generation for the citizen.
- Finance Factor
In Singapore, car finance is not everyone’s cup of tea. One needs a bundle of documents before loan approval. Moreover, the struggle does not end here you have to pay a high car loan interest and broker charges. Broker charges even for second-hand cars can vary from 18 to 30% depending upon the car brand and condition. After multi layer of government taxes and finance rates, owning a car can prove a great burden on your saving.
- Car Insurance
As car insurance amount is not so much in Singapore but it is an additional cost that added in car value. In Singapore if your owing car you need to submit a valid driving license, this will be verified by the government in case of not having, you have to pay extra money to the government. Besides, the insurance company also check your past records, if you had met with an accident they may charge you with high insurance rate as compared to normal.
- Fuel Prices
Fuel charges in Singapore are relatively high compared to other countries. Buying a car may put an extra burden on your monthly expenses. For the decent salary earner, whether you want to drive down the street or across town fuel bill can affect your monthly budget. So, it is always advisable to lease a car and use only whenever you required.
- Parking Lot
After so much trouble if you able afford to buy a car, the parking lot is a problem whom you daily meet. Whether you are going to the restaurant or require a space below your apartment, there is always an amount to pay the local government. That could prove a great burden on one’s pocket.
If you reside in Singapore and want to get around with a vehicle, you need to consider the above factor first. If not, you may struggle with some issues whether having a new car or Second-hand car.
Author Bio: Mason Reynolds is professionally a trader and a part-time blogger. He is working for Everise Auto which provides used cars for sale in Singapore. He has more than 7 years of experience in Exporting used Car & cars Parts in Singapore and over the world.